Dmytro Kharkov

Guy LeBas: CPI data may not capture full drug cost changes

Guy LeBas: CPI data may not capture full drug cost changes
CPI may overlook total drug costs

Guy LeBas points out that complexities in Consumer Price Index (CPI) data collection can lead to certain costs being overlooked. He explains that while cash drug costs have decreased, the overall expense has not dropped as much because some costs were moved to areas not tracked by the CPI.

LeBas has recently projected that July core PCE would rise 0.27 percent month over month, based on his review of CPI and PPI figures in a previous analysis. He also noted that markets were pricing a 40 percent chance of a U.S. rate hike in September, citing uncertain policy guidance in recent comments. These observations follow his ongoing focus on the nuances within key economic indicators.

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